The cryptocurrency explosion has reached the middle east. Bitcoin, the leading cryptocurrency, first emerged in the UAE in 2014. Since its introduction, the cryptocurrency’s popularity has been increasing daily.
The currency is also gaining acceptance as a mode of payment. Dubai plans to improve its digital economy by having 1000 cryptocurrency businesses being operational by the end of 2022. The influx of bitcoin trading has created room for unscrupulous trading activities, with scammers entering the Bitcoin market. Starting January 2, 2022, the UAE passed stringent laws that will see Bitcoin scammers face a penalty of up to AED 1 Million or a 5-year prison term.
As the UAE Government gears toward protecting its citizens from scammers, having information on trading in Bitcoin is essential. This simple guide will outline the crucial steps to take when buying Bitcoin in the UAE.
Best Cryptocurrency Exchanges in UAE
The top trending cryptocurrencies in the UAE have two things in common: mobile apps, UAE-based Bitcoin wallets, and staking. They are:
Coinbase and Binance are traditional crypto exchanges while eToro offers access to stocks in addition to crypto.
Is it Legal to Use Cryptocurrency in UAE?
There is no current legislation that prohibits the use of cryptocurrencies in the UAE. However, the Central Bank of UAE does not recognize it as legal tender. The only legal tender that the government acknowledges is the UAE Dirham.
The government has put measures to protect bitcoin traders from scammers by imposing a jail term and fine for those found guilty of unethical bitcoin trading activities. The Chief Executive Officer of the Dubai Blockchain Centre remarked at a conference in Dubai, “Five years ago you wouldn’t see people coming to Dubai to do the cryptocurrency business … we’re open-minded, and we’re willing to change regulations with reason”. This demonstrates that the cryptocurrency trade in UAE is expected to grow exponentially.
Is it Easy to Buy Bitcoin in the UAE?
Buying Bitcoin in the UAE is relatively easy since there are several different approaches you can use. Below, we delve into the various ways to purchase Bitcoin in the UAE.
Use PayPal
PayPal is the most secure method of purchasing Bitcoins in the UAE. It is a popular choice for most traders in the UAE. Most currency exchange platforms protect PayPal to Bitcoin trades with escrow guaranteeing a safe transaction.
When buying bitcoins using PayPal, the best platform to consider is eToro since you will only be charged 0.5% for the transaction.
Use a Credit Card
Credit and debit cards are an alternative option for purchasing bitcoins in the UAE. However, some traders don’t opt for this option due to currency exchange platforms’ high fees for deposits. These platforms depend on third-party payment processors that charge up to 10% in transaction fees. The minimum purchase you can make with a credit card is $10.
A low-cost option to consider when buying bitcoins with a credit or debit card in the UAE is eToro.
Use Neteller of Skrill
Like PayPal, these platforms offer a secure transaction when buying bitcoin in the UAE. The purchase is processed instantly. You will be charged 0.5% for the transaction.
Cash of Cash Deposit
Bitcoin ATMs make it easier to buy bitcoin using cash or making a cash deposit. Buying BTC through an ATM is a fast way of getting the cryptocurrency stored in your e-wallet.
However, buying through cash is costly since you will be charged 6-12% for the transaction.
Through P2P Exchanges
With P2P, you can take advantage of the listing and find the best deals. However, P2P transactions do not provide anonymity as other platforms do. The process is quite fast and simple. All you need is to set up an account and find a suitable trade partner.
Are There UAE-Focused Crypto Platforms?
Despite cryptocurrency not being a legal tender recognized by the UAE government, it does not restrict you from cryptocurrency buying, selling, trading, or staking.
There are also some unique platforms and coins in the Middle East including the following:
- BitOasis
- ArabianChain
- OneGramcoin
- Money Trade Coin
- Menapay
Why Should I Buy Bitcoin in the UAE?
The country is slowly opening to adopting cryptocurrency as a legal tender for various transactions. As the country is gearing up for the establishment of 1000 cryptocurrency businesses by 2022, here are more reasons why you should buy Bitcoin in UAE:
High Return of Investments.
Bitcoin guarantees investors a high return on their investment. In 2021, the price of Bitcoin reached $68,000 but experienced a drastic decline in July to $30,000. Experts anticipate that the cryptocurrency will reach $200,000 in 2022.
Low Entry Levels
eToro allows traders to start with a minimum cryptocurrency trade of $10 (36.73 Dirham). Coinbase will enable traders in UAE to buy Bitcoins for as low as 2 AED. This makes it an affordable entry investment for everyone.
Inflation Rates
As inflation rates skyrocket, currencies all over the world become affected. Cryptocurrency has this competitive advantage over traditional finance. During the Covid-19 pandemic of 2020, stock markets crashed, and most currencies were trading at an all-time low. To date, some stocks are yet to recover from the drastic plummet.
Bitcoin is an excellent option for hedging against fluctuating stock prices and inflation rates.
Where Can I Sell Cryptocurrency in UAE?
The UAE has local Bitcoin shops, making it easier to sell bitcoin and exchange it with cash. Coinsfera is one avenue you can consider when selling Bitcoin.
There are no special requirements for selling Bitcoin. All you need is a copy of your ID/Passport. The sale transfer is fast, secure, and private. You can trade-in your bitcoins for cash in 10 to 15 minutes.
Coinsfera provides an online calculator through their website to help guide you on the amount of cryptocurrency you want to sell.